Funds Of Hedge Funds

Wed Feb 1, 2006

Competing hard for distinctive niches

South African fund of hedge funds (FoHFs) managers inhabit a
relatively intimate space. Their universe comprises about 15
firms, but only a few can claim to manage substantial assets.
The other firms tend to be significantly smaller and many are
likely to be searching for their first major clients. While the
FoHFs investor base is generally high-net-worth individuals and
institutions, the majority of FoHFs are looking to the pension
funds to fuel their future expansion.

Of the 80 to 90 single-manager hedge funds that register on
the radar screen for manager selection, only 60 are usually
given any serious consideration. And, within that group,
approximately 30 have a high profile and attract FoHFs
attention. Jarred Glansbeek of RisCura, who advises many large
pension funds, has performed an 'overlap' analysis to determine
to what degree there is a commonality in manager selection.
"Although there were some portfolios where the overlap
level...

ISSN: 2151-1845 / CDC10004H

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